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invest in this fund except employees at Renaissance. So, no one shared in the “profits” except insiders at Renaissance. There was no evidence of these large gains, other than their lies, but large institutional investors believed the lies and invested their institutional funds in a subsidiary fund of Renaissance, the Medallion fund, in which outsiders were allowed to invest. No large profits were earned by this fund, only small losses. But investors kept believing in Renaissance anyway.
Simons kept promising, and Renaissance kept getting new large investors, and the truth was well hidden. What Simons had created was a modern-day Ponzi scheme, similar to the Madoff model. However, Simons became very agitated upon seeing the collapse of the illustrious Ponzi-Madoff pyramid scheme.
Simons was squirming for a way out of all the lies he had told to investors. Mercer stepped up with a plan.
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